Every once in a while someone writes a rant on Active Rain... complaining about new home builder commission policies... and the danger of not getting paid if one of "your buyers" purchases a new home from a builder.
Since I have spent many years working as a Realtor, and also many years working for several national New Home Builders... I thought I would share my thoughts.
The only set rule... is that there are no "set rules." Builder policy usually depends on the area, and also on what is customary in that market.
Builders in some areas will pay an agent even if they only show up at the writing of the contract... and some will NOT pay them if they do not physically bring (accompany) the buyer through the sales office door on the buyer's first visit. Besides depending on the area and the custom, it can also vary... according to the individual builder.
In the Fort Worth/Dallas area... once in a great while... I have actually heard cases where an on-site builder rep, after sitting with the buyer and writing up the sales contract (before he or she presented it to management for signing) they then called the agent and surprised them by telling them they had just sold a house.
In this particular case... this was done simply because the buyer told the rep that they had an agent, and would not buy without them... regardless of the work the on-site builder rep had gone through.
Again, this has worked in the Fort Worth/Dallas area, but I have heard that in many other areas... there is no way in the world this would be allowed to happen. And, of course, there have even been cases where builder representatives have been FIRED for doing something like this. But... let me repeat... it all depends.
Obviously, once I learned that this particular builder really valued the relationship they had with area Realtors... I visited them often, whenever I had a buyer in their price range.
On the other hand... also here in DFW... there is one builder, and probably more... who has a professionally-made sign... nailed right there on the outside wall of the sales office as you go in the door... WARNING buyers that if they are working with an agent, but that agent is not WITH them... that they better not set foot IN to the sales office, or the builder will not honor that agent.
Don't let anyone tell you anything different. Builder policy depends on the state you are in, the area, on the builder customs, and also on the individual builder, who may or may not be "in tune" with what all the rest of the builders in the area are doing.
The only thing you can assume about dealing with a builder and getting paid for it... unless you know from previous experience working with them and developing a relationship with them... and in particular, with that individual on-site builder representative... one thing you can assume... is that you really cannot assume anything.
Again, it's the same old way of doing things. It's real simple. You find out what the rules are... and then you play by them.
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